Note 9 - Basic And Diluted Earnings Per Common Share:

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Text Block]

9. BASIC AND DILUTED EARNINGS PER COMMON SHARE:

Basic earnings per common share has been calculated by dividing net income for the period by the weighted average number of common shares outstanding during each period. Diluted earnings per share has been calculated by dividing net income for the period by the weighted average number of common shares and potentially dilutive common shares outstanding during the period. In computing diluted earnings per share, the treasury stock method is used to determine the number of shares assumed to be purchased from the conversion of common shares equivalents or the proceeds of option exercises.

The following table is a summary of the basic and diluted earnings per common share:

	Three months ended September 30, 2012		Three months ended September 30, 2011			Nine months ended September 30, 2012		Nine months ended September 30, 2011
Numerator for basic and diluted earnings per common share:
Net income (loss) for the period	$	1,635,000	$	(1,178,260)		$	3,994,617	$	115,345
Denominator for basic and diluted earnings per common share:
Basic weighted average number of common shares outstanding		45,094,678		53,452,205			46,362,261		53,444,959
Effect of outstanding stock options		3,316,751		-			3,241,609		2,303,818
Diluted weighted average number of shares outstanding		48,411,429		53,452,205			49,603,870		55,748,777
Basic earnings (loss) per common share	$	0.04	$	(0.02	)	$	0.09	$	-
Diluted earnings (loss) per common share	$	0.03	$	(0.02	)	$	0.08	$	-

For the three months ended September 30, 2012, outstanding options to purchase 758,374 common shares were not included in the computation of diluted income per common share because all such options had exercise prices greater than the average market price of the common shares.

For the nine months ended September 30, 2012, outstanding options to purchase 758,374 common shares were not included in the computation of diluted income per common share because all such options had exercise prices greater than the average market price of the common shares.

During the three and nine months ended September 30, 2012, 1,255,900 common shares and 2,371,204 common shares, respectively, were repurchased and cancelled under the terms of our stock repurchase program announced in November 2011.

During the three months ended March 31, 2012, 7,570,236 common shares were repurchased and cancelled under the terms of a modified Dutch auction tender offer announced in December 2011.

The computation of earnings per share and diluted earnings per share for the three and nine months ended September 30, 2012 includes reductions in the number of shares outstanding due to these repurchases. No common shares were repurchased during the three and nine months ended September 30, 2011.